How to Buy Bitcoin: Want to buy the dip? Find out how to buy crypto safely and securely, where to buy crypto and more in Koinly’s beginner’s guide on how to buy crypto.
1. Choose a cryptocurrency to purchase
2. Find a crypto exchange
3. Buy your crypto
Are you wondering ‘which crypto should I buy?’. To help you choose, here are two of the most popular (we’re pretty sure you’ll have heard of them), as well as some interesting altcoins to consider.
Bitcoin is a highly sought-after digital currency that offers numerous benefits to its users. It's a decentralized currency that operates without centralized control and provides anonymity to users. How to Buy Bitcoin, Additionally, it's secure, transparent and provides instant transactions, making it ideal for businesses and individuals. Investing in Bitcoin can be a great way to diversify your portfolio and gain financial freedom.
Ethereum is the second-biggest cryptocurrency out there, with the second-largest market cap. This shows that it has market power in the crypto world, and it also means popularity and adoption are widespread. Ethereum is leading the way in terms of DeFi. This is important to consider, since some say DeFi could be 100 times larger than it is today within 5 years.
Once you know what crypto coins you’re buying, your next task is to find a suitable crypto exchange.
A crypto exchange is a platform on which you can buy and sell cryptocurrency. You can use exchanges to buy crypto using regular currency, like the US Dollar. You could also trade one crypto for another — converting Bitcoin to Ethereum, for example.
Most exchanges will include some type of fee for your transactions. These are based on the size of the transaction, or they may be dependent upon your level of activity, or, in some cases, they may be unrelated to either of those factors. How to Buy Bitcoin
Consider how fees would impact your investing based on your style. Do you plan to be highly active, making some transactions every day? If so, perhaps consider an exchange with a lower per-transaction fee. If you’re considering transacting less often, these fees aren’t as much of a problem, and you may want to focus on other features, such as security.
Trading fees : The primary source of revenue for exchanges. They are typically charged on both fiat-crypto trades as well as crypto-crypto trades.
Deposit/Withdrawal fees : Some exchanges charge fees for deposits and/or withdrawals. Deposit fees vary based on the type of deposit but are less common than withdrawal fees since exchanges want to incentivize users to fund their account.
Interest/Borrowing/Liquidation Fees (Advanced): Some exchanges offer crypto margin trading: the ability to borrow or synthetically borrow additional funds to increase your position and create leverage.
Some exchanges offer extra benefits and features which may favor some users over others. This may be transactional or to do with ability.
For example, some changes like Kraken and Bitfinex offer crypto margin trading. This sophisticated trading feature appeals to advanced users, but is not useful for beginners.
Then there’s stable coins. Some exchanges, such as KuCoin and OKX, offer native tokens which get you discounts and decrease trading fees. This is great for people doing high volumes of trades.
If you want to see an in-depth guide on the best crypto exchanges to research, check out the link below.
Once you have chosen your exchange and gone through the various sign-up processes, the next step is to link your bank account and buy some crypto.
All exchanges are slightly different, but the process will be relatively similar. Either way most exchanges make this really simple for you because it’s in their interest to do so. So don’t stress. This is the easy part.
Once you’ve signed up, some of them ask to link your bank account right away. Others link your bank account while in the process of buying crypto.
Cryptocurrencies have been described as a transformative technology that could revolutionize a number of industries. Because they cannot be printed or seized, cryptocurrencies may also provide a safe store of value. However, crypto is still considered speculative, and there is no guarantee that they will ever achieve genuine mainstream usage. That depends on governments. How to Buy Bitcoin
Unlike fiat money, most cryptocurrencies have a limited supply capped by mathematical algorithms. This makes it impossible for any political body or government agency to dilute their value through inflation. For example, the supply of Bitcoin is capped at just under 21 million coins, while central-bank-controlled currencies can be printed at the will of the government.
How to Buy Bitcoin, Investors believe the cryptocurrency will gain value over the long-term because the supply is fixed, unlike the supplies of fiat currencies such as the U.S. dollar. Many investors expect Bitcoin to gain value as fiat currencies depreciate. Those who are bullish about Bitcoin being extensively used as digital cash believe that, over the long term, Bitcoin has the potential to become the first truly global currency.
A diverse portfolio makes it easier to grow wealth, and it can also buy you some protection during periods of economic volatility. Adding cryptocurrency to your portfolio could be a good way to diversify, especially if you’re primarily loaded up on stocks.
With inflation rising so much, having a separate store of value rather than letting your cash sit in a bank and lose buying-power, crypto could be the answer.
